Labor Force Leaving Eastern Europe
Workers Emigrate to Western European Countries for Better Jobs
Workers are leaving Eastern European counties in droves for better job opportunities in the West. Regional governments are working feverishly to combat the exodus.
For many years now, global companies have been opening new business operations in Eastern European nations. These businesses have exploited the availability of skilled labor at relatively low wages. Tired of long hours and low pay, many of these workers are now emigrating to Western European countries where better opportunities and more pay await them. This wave of migrants includes approximately 80,000 Poles, with tens of thousands more from Slovakia, Latvia, Lithuania, Estonia, and other countries..
Eastern Europe Labor Shortages
In the wake of these workers' departures are huge labor shortages, leaving companies unable to keep up with demand for their products and services. These shortages are most notable in the automotive industry, but have also affected other segments such as construction, health care, architects, civil engineers, and computer technicians.
Slovakia has created an excellent environment for car manufacturing and capacity has increased, but now automobile companies such as Volkswagen and Kia Motors have been unable to find enough skilled workers to assemble the vehicles. Poland and the Baltic states have been unable to meet housing demands due to too few workers, and the construction boom in parts of Romania has also slowed due to the lack of skilled labor. Things are so bad in Poland that President Lech Kaczynski has complained of being unable to find someone to paint his house because all the painters have moved away.
Western European Emigration Barriers Removed
The labor shortage accelerated after some European Union countries, such as Great Britain, Ireland, and some Scandinavian countries removed barriers for workers from new member states as soon as they joined the Union in 2004. Studies have shown that the largest pool of workers for the U.K. is from Eastern Europe.
Replacing Lost Workers in Eastern Europe
Responding to the shortages, Eastern European countries are attempting different strategies to fill the gaps. In 2003, the Czech Republic started a program called Selecting Qualified Workers From Abroad. This program offers permanent residence permits to people who have lived and worked in the country for two and a half years. Poland is now instituting a similar program and has also started recruiting workers from India and China.. Many countries are issuing special work permits to citizens of Ukraine, Belarus, Uzbekistan, and Tajikistan in an attempt to fill their vacant positions.
Labor problems may increase further in the coming years as Eastern Europe's population grows older. Net population drops have been recorded in five of the eight Eastern European countries that joined the European Union in 2004. Regional governments are worried that the lack of skilled labor could slow down foreign investment. Still, they are reluctant to increase wages because it may lessen their competitive advantage over Western European countries. Ultimately, pay rates will need to increase before the labor shortage becomes so bad that companies are forced to pull their operations out of Eastern European nations.
References
Dempsey, Judy. "Skilled workers leaving Eastern Europe in droves." International Herald Tribune. July 5, 2007.
